By A. Myrick Freeman III (auth.), Patricia A. Champ, Kevin J. Boyle, Thomas C. Brown (eds.)
A Primer on Nonmarket Valuation is exclusive in its transparent descriptions of the main ordinary nonmarket valuation options and their implementation. participants operating for presidency firms, lawyers concerned with traditional source harm checks, graduate scholars, and others will get pleasure from the non-technical and useful tone of this publication.
The first component to the ebook offers the context and theoretical origin of nonmarket valuation, besides sensible info matters.
The center sections of the Primer describe the most important said and printed nonmarket valuation concepts. for every approach, the stairs concerned about implementation are laid out and defined. either practitioners of nonmarket valuation and people who are new to the sphere will come clear of those tools chapters with an intensive figuring out of the way to layout, enforce, and research a nonmarket valuation study.
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Extra info for A Primer on Nonmarket Valuation
For example, problems in scenario specification, sampling , and item nonresponse. The major questions regarding all stated preference methods concern the validity and reliability of the data; that is, whether the hypothetical nature ofthe questions asked inevitably leads to some kind of bias or results in so much "noise" that the data are not useful for drawing inferences. These issues will be discussed in detail in Chapters 4 through 7. The most commonly used stated preference method is the contingent valuation method covered in Chapter 5.
I have so far introduced the broad concepts ofcompensating and equivalent welfare measures. Hicks (1943) developed the compensating and equivalent measures distinctly for price and quantity changes and named them respectively as the price compensating/equivalent variation for changes in prices and the quantity compensating/equivalent variation for quantity changes. These two distinct measures are now typically referred to as the compensating/equivalent variation for price changes and the compensating/equivalent surplus for quantity changes.
Income changes can also occur as a result of policies, and so we deal with changes in income first. For example, regulating the actions of a polluting firm may decrease the demand for labor and result in lower incomes for workers. 3 Let and ut TheTreatmento fIncomeChanges UO = «r», QO, yO) represent the status quo utility level = v(P I, Q 1, Y I)the utility level after a generic change in income, prices, and/or nonmarket goods. Our compensating and equivalent measures CONCEPTUAL FRAMEWORK FOR NONMARKET VALVATION 33 introduced above are kept here , but I have added a change in income .
A Primer on Nonmarket Valuation by A. Myrick Freeman III (auth.), Patricia A. Champ, Kevin J. Boyle, Thomas C. Brown (eds.)